• Goldbell Evolution Network (GEN) successfully expands offerings into multi-asset-backed loans and floor stock financing
Online PR News – 04-September-2020 – Singapore – Goldbell’s private debt investment platform, Goldbell Evolution Network (GEN), announces record raise of SGD 900,000 for the launch of its new floor stock financing product. GEN, pronounced as “ghern”, provides alternative investment opportunities into private debt for accredited investors, family offices, business owners and professionals.
Floor stock financing is a short-term asset-backed revolving line of credit used by automotive dealers to finance the purchase of vehicles displayed on showroom floors (or lots). This pre-approved facility limit allows dealers to request for multiple draw-downs on the credit line and as the inventory is sold, the loan is repaid. Until then, the inventory remains as collateral for the loan.
Launched in November 2019, 90% of GEN’s loans are secured against property-related assets in Singapore. Over the last 6 months, GEN has expanded their asset-backed verticals to include other assets like equipment. With the successful launch and fund raising for their first floor stock financing vertical, GEN has now added vehicle backed assets to their list of offerings for investors.
Floor stock financing provides greater security to investors as 100% of the loan is collateralised through a transfer of title and ownership to Goldbell Financial Services (GBFS; the arm of Goldbell that runs and managed GEN). GBFS is nominated as the co-insured and loss payee of all insurance policies on all the floored vehicles. In addition, the GEN platform allows a short-term loan investment tenure of 6 months and investors have the option to receive their principal in full or rollover their loan investments in full or in part upon each loan maturity.
CEO of Goldbell Financial Services, Alex Chua, attributes the well-received launch of their first stock financing product to several factors. “Investors are looking for more secure and yet alternative investments during this pandemic, to diversify their portfolios. Floor stock financing is such an option. However, floor stock financing was traditionally offered by credit companies directly to vehicle companies. Through GEN, private investors are now able to take part in such investments.”
GEN sends details of potential investments to GBFS’ base of pre-approved and accredited investors and opens up investment opportunities for these investors to take part in with the purchase of “investment lots” of a pre-determined amount per lot. GEN’s technology tracks individual investments and aggregates them to create this Peer-to-Peer (P2P) lending network which is a speedy and powerful way for investors to take part in numerous business deals that would traditionally be unattainable or unavailable to individual investors. P2P also helps business owners with additional access to funding, providing this opportunity of raising credit for their businesses and helping them to ride through the pandemic.
GEN’s first floor stock financing deal company, Bell Auto , will now have access to a new line of credit to finance their business operations through the pandemic. Founded in 2018, Bell Auto was the first commercial vehicle wholesaler in Tuas to offer a new concept dealership offering a complete suite of services for the consultation, purchase and sale of commercial vehicles in one location.
“Bell Auto’s business approach is centred on constant innovation. We’ve opted to raise credit through GEN a P2P platform because it allows greater flexibility and a longer loan tenure with the same interest rate as other private financing companies. We see this as an opportunity to help us ride through the pandemic, create even more value for our customers and emerge stronger,” says Ong Kheng Kwang, Bell Auto’s Sales Director. “We intend to expand our range of used vehicles to help more local SMEs access to affordable second-hand vehicles.”
“Floor stock financing is a great way for investors to take part in the development of better industry practices in the automotive industry. With access to funds, automotive dealers will be able to invest in longer-term, more sustainable and profitable solutions for their businesses,” adds Alex. “With our GEN platform, we allow many more investors to play a meaningful role in the betterment of society by giving them access to a wider range of responsible investments. GEN will continue to seek for investment verticals that we can restructure with GEN technology and methodology to create more of such impactful investment options.”
Goldbell is Singapore’s largest industrial vehicle leasing company, with a fleet size of up to 8,700 vehicles in Singapore. GBFS has a successful track record disbursing over $777 million till date with a non-performing loan rate of less than 0.15%.
About Goldbell Evolution Network (GEN)
GEN operates a private investment platform that facilitates loans to a diversified pool of Singapore local companies seeking funding while offering investors the opportunity to boost their income, diversify their portfolios, alongside tapping on Goldbell's financial capabilities, domain knowledge and an extensive network of local businesses. For more information, visit https://app.gen.sg/introduction/.
About Goldbell Financial Services
In a space where personalised financing solutions can make a difference in making or breaking a business model, rigid structures are limiting banks from providing the flexibility that companies need, especially for small and medium enterprises. Goldbell Financial Services dedicates itself to providing clients with new and innovative financial solutions.
It is the preferred financing partner in supporting automotive, asset-backed and working capital loans, and it has built success stories within a relatively short timeframe of five years. Goldbell Financial Services has amassed a strong portfolio of clients from varied sectors such as warehousing and logistics, F&B, manufacturing, courier service, servicing, construction, startups and more. More than S$777 million has been funded cumulatively (as at 31 Jul 2020), empowering small business owners with capability-enhancing financial support to help businesses survive and thrive in today's competitive economic landscape.
Currently available in Singapore and Malaysia, plans are also underway to offer Goldbell Financial Services in other markets, such as Cambodia.
About Goldbell Group
Goldbell Group is Singapore’s largest player in leasing and distribution of commercial and industrial vehicles. Literally a driving force behind Singapore’s growing economy, Goldbell has been providing industry-wide transport and logistic solutions – passenger and commercial vehicles, as well as material handling equipment – for nearly four decades. The company’s diversified business portfolio operates under three main business pillars: Distribution, Leasing, and Financial Services, which deliver a suite of total business solutions (vehicle and equipment sales, leasing, financing, aftersales service, spare parts, insurance, and equipment usage training, as well as fleet management services).
Understanding the importance of innovating its core business through tech and the need to venture into new capabilities to future proof its business. Goldbell Group set up a Future Mobility division with the vision to be a leading player in the future mobility landscape for smart cities. Tapping the Group’s domain knowledge, it assesses and deploys innovative and functional technologies that complement and advances its core business. Looking beyond its existing ecosystem, it also invests in disruptive start-ups through an evergreen corporate venture capital fund, operates an accelerator to groom promising start-ups with the help of a network of strong corporate partners in the region and establish new businesses such as a shared mobility technology company and an autonomous warehousing solutions company.
Goldbell Group is one of the high-growth local companies identified by Enterprise Singapore to be part of the Scale Up SG programme.
For more information, please visit: http://www.goldbellgroup.com/
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